UK bans re/insurance coverage of Russian aviation and space industry; more restrictions underway

The UK has banned its re/insurance industry from offering coverage to Russian firms from the aviation and space industries and further bans are on the way, the UK Treasury said in an online statement.

The ban covers all direct or indirect insurance and reinsurance coverage for the Russian industries.

The measure should "severely limit access to the global insurance and reinsurance market," the Treasury said, citing Lloyd's and the London Market's "world leader" status in the specialty lines of coverage.

The ban will be broadened to cover unspecified further portions of the Russian economy.

"The UK Government will bring in legislation to prohibit UK based insurance and reinsurance providers from undertaking financial transactions connected with a Russian entity or for use in Russia," the Treasury said. Details are pending "in due course."

"In taking such action, the UK is demonstrating its commitment to apply severe economic sanctions in response to Russia’s invasion of Ukraine," the Treasury said.

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